2020.04.2319:21:00UTC+00Gold Futures Settle Higher For 2nd Straight Day

Gold prices moved higher on Thursday, extending gains from previous session, as lingering worries about the economic impact of the coronavirus prompted investors to seek the safe-haven asset.

Investors were betting on hopes governments and central banks across the world will step up stimulus measures to revive sagging economies.

A sluggish dollar too supported gold's uptick. The dollar index, which dropped to a low of 100.04, later rallied to 100.60 before retreating to around 100.45.

Geopolitical tensions have surfaced again after Iran's Revolutionary Guard conducted a space launch, testing its long-range missile program. Following this, the U.S. President Donald Trump said he has instructed his Navy to "shoot down and destroy" any Iranian gunboats that harras Navy ships.

Gold futures for June ended up $7.10, or about 0.4%, at $1,745.40 an ounce, well off the session's high of $1,764.20.

Gold futures had ended higher by about 3% on Wednesday.

Silver futures for May ended up $0.220 at $15.357 an ounce, while Copper futures for May settled at $2.3120 per pound, gaining $0.0220, or about 1%.

U.S. President Donald Trump is set to sign the bill providing a $484 billion package of new pandemic relief funds today.

Trump said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.

Mexico said it will increase spending on social programs and infrastructure projects by $25.6bn, in a bid to jump-start the coronavirus-hit economy.